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Getting Funded: Step 4, Due Diligence

Passionate Intensity

“Due Diligence” is a broadly defined term with explanations here:   WikiPedia , Webster’s , and elsewhere. YOU should….

Signed Term Sheet

ithacaVC

We (Cayuga Venture Fund) just signed up a term sheet with a new company (Company X).  No need to disclose the company name or industry for purposes of this post. Rather I want to briefly comment on the process leading up to the term sheet and next steps. That is normal for us. 2. And they were typically good answers. 4.

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

Tags: Raising Venture Capital Startup Advice Tech Market Analysis Term Sheets

What is it Like to Negotiate a VC Round?

Both Sides of the Table

Another problem that arises in financings these days is that after a VC submits a $2 million term sheet all of a sudden a large number of “helpful investors” pop up who were waiting for a “strong lead” and now all of a sudden a $2 million round becomes a $2.75m round. It’s very simple. Size of my check.

Copywrong Again: Founding the Next Pinterest or Napster?

Gust

Does using a friend’s name or photo in a Facebook “Sponsored Story”  (e.g., “David S. Rose likes Gust.

Bad Notes on VC

Gust

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. This week. On the phone …. Him: Yeah. About $1 million.

Notes on the acquisition process

Chris Dixon

In terms of ethics and reputations, it is important to be fair to all parties involved: the acquirer, founders, employees, and investors. Some acquirers treat LOIs the way VCs treat term sheets, as a contract they’ll honor unless they discover egregious issues like material misrepresentations. is generally a bad idea.

The investment that didn’t happen

K9 Ventures

However, the IP climate remains unchanged, and it’s likely that other villains will continue to exploit similar situations.

How to Work with Lawyers at a Startup

Both Sides of the Table

Shame about not getting it in legal writing that you owned the original IP.  the link is here. Many people start companies arse backwards. 

Burnham's Beat: SkyGrid and the Emergence of Flow-Based Search

Burnham's Beat

« Microsoft/Yahoo: A Bad Deal For Silicon Valley: Take II | Main. | 4 Things to Do After You Get Your First Term Sheet » 02/13/2008. Burnhams Beat. Articles on Technology and Finance. About Bill. Archived Posts. Blog Roll. IPO/M&A Lists. By Category. By Month. Recent Posts. Internet IPOs. Internet M&A. Software IPOs. Blogs.

RSS 0

Startup Resources

www.vccafe.com

Cheat Sheets : Equip youself with HTML/CSS cheatsheets! IP Location Tools. WSGR Term Sheet Generator. About VC Cafe. Contact.

Time is the Enemy of All Deals

Both Sides of the Table

We ended up agreeing a term sheet for $16.5 Yeah, we passed, too.  I heard they were struggling to get a term sheet.

D-Wave's Dream Machine

Fresh Inc.: The Staff Blog

We need to sign away our IP? I don''t care." All of that seeded what is now the biggest IP portfolio in the world in quantum computing.

Getting Due Diligence Ready

StartupCFO

Investors will perform business diligence before they issue a term sheet. trust you to take my $1 and make it $5 or $10. Legal Diligence.

The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. Financing. ” The Cost of Financing.

Shout Out to Seth Levine, or the In-N-Out burger startup

Scalable Startup

To reuse an overused term – Wait what? Long term employment, new jobs. ” [link]. Worth the read. for over a year: [link].

The Forgotten Founder: YouSendIt’s Khalid Shaikh

Fresh Inc.: The Staff Blog

When you're a given a term sheet, it's like the queen knighting you; you are supposed to genuflect for even gracing you with terms."

A Compilation of the Web's Best Advice for Entrepreneurs

Platforms and Networks

skip to main | skip to sidebar Platforms and Networks Thoughts about platforms, network effects and entrepreneurship Wednesday, November 25, 2009 A Compilation of the Webs Best Advice for Entrepreneurs Below, I link to blog posts and other online resources that offer advice for entrepreneurs. Great list. Tom, well done - solid list. Nice list.

When Is A Startup "Venture Fundable?"

Seed Stage Capital

Part of this work involves assessing whether a company is “fundable&# given its current stage of development, traction and business plan. chords.

SBIC 11

When to Bring Up Valuation

ithacaVC

In my view, starting off a VC relationship by diving into perhaps the most critical economic term is kind of like, well, moving too fast on a first date. Seriously, pre-money valuation is a function of many things (team strength, size of market, IP, hotness of sector, etc.) Here is why.

Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Returning to our sample term sheet: Note Purchase Agreement. Invested Interests angel investment deal terms fundraising startups venture capital

What Now: Deal or No Deal?

Peter Levine

You realize that some of these terms are not very favorable to SpiderNet, but this deal has the ability to fundamentally change the future for you. Do you agree to these terms and quickly move to lock down a deal, or do you negotiate further, possibly losing the deal to a competitor? Do not agree to a five-year term. What Now?

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

As such, you should make sure to think of the proposals as an investor and get a reasonable term sheet. GrasshopperHerder.com. Go for it.

The Best Entrepreneurs Are Hyper Competitive & Hate Losing

Both Sides of the Table

Company A never raised their round.  6 months afterwards they laid off 75% of their staff and are existing on fumes to protect their IP to this day.

Channel your Inner VC to Understand Startup Valuations

www.currentlyobsessed.com

Read Terms that Hurt (Venture Hacks). He tries to write things that havent already been written 9000 times. For example, liquidation prefs. 

Setting And Shaping A Strong Startup Culture

Seed Stage Capital

Over the past several years, Ive had meaningful interactions-- meetings, calls, etc.-- with perhaps 700-800 early stage startups. Opportunity lost.

The Business Plan is Dead; Long Live the Business Plan.

Seed Stage Capital

skip to main | skip to sidebar 10 August 2009 The Business Plan is Dead; Long Live the Business Plan! space, I would agree—to a point. Like This?

Web 2

Series Seed Financing Documents

www.seriesseed.com

Series Seed Term Sheet (v 2.0). Series Seed Term Sheet. Long term capital gains possible for early exit. It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. SeriesSeed.com. Documents. Comments.

Startup Blog: Getting Rights to the Technology

Taffy Williams

In selecting the technology, you may already have IP or inventors identified but not have the rights yet. Remember this is a business. Now what?

Getting Funded: Step 4, Due Diligence

Passionate Intensity

Due Diligence” is a broadly defined term with explanations here:   WikiPedia , Webster’s , and elsewhere. There are funds that prefer to do significant due diligence before  issuing a term sheet, and some save the bulk of the detailed work for the time between the term sheet’s signing and the actual closing of financing.

Ask the Angels

Ask the Angels

The strategic buyer will pay a strategic premium because they can see an immediate short term method for recovering the acquisition cost. Too many Angels focus on the near term issues without appreciating that even these decisions need to be seen in the context of the exit. call these high growth potential products.

Ask the Angels

Ask the Angels

The strategic buyer will pay a strategic premium because they can see an immediate short term method for recovering the acquisition cost. Too many Angels focus on the near term issues without appreciating that even these decisions need to be seen in the context of the exit. call these high growth potential products.

Ask the Angels

Ask the Angels

The strategic buyer will pay a strategic premium because they can see an immediate short term method for recovering the acquisition cost. Too many Angels focus on the near term issues without appreciating that even these decisions need to be seen in the context of the exit. call these high growth potential products.

Ask the Angels

Ask the Angels

The strategic buyer will pay a strategic premium because they can see an immediate short term method for recovering the acquisition cost. Too many Angels focus on the near term issues without appreciating that even these decisions need to be seen in the context of the exit. call these high growth potential products.